Veteran Investor: The Trade War is a Warm-Up For a Financial Crisis

According to veteran investor Mark Mobius, there may be a financial crisis coming down the pipes after the United States decided to fire more shots in its trade war with China. Mobius says the trade war is simply a warm-up for the impending financial crisis.

“There’s no question we’ll see a financial crisis sooner or later because we must remember we’re coming off from a period of cheap money,” said Mobius while in an interview in Singapore, according to Bloomberg. “There’s going to be a real squeeze for many of these companies that depended upon cheap money to keep on going.” The dispute between the U.S. and China will probably worsen too. President Donald Trump is unlikely to suffer a huge blow-back from his tariffs, as their inflationary impact will be matched by rising U.S. wages at a time when unemployment is low, Mobius said.

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